REPOSITIONING FOR GLOBAL RELEVANCE:

OPPPORTUNITIES AND REALITIES

Women in Management, Business

and Public Service (WIMBIZ)
Annual Lecture, 2014

 
Arunma  Oteh  
Director-­‐General,  Securities  &  Exchange  
Commission,  Nigeria  (SEC)  
 
 
 
13th  March  2014  
1
Outline

1 Opportunities in the Global Economy

2 Opportunities in Africa

3 Opportunities in Nigeria

4 The Realities

5 Improving access to Opportunities

Opportunities in the Global Economy...
The world economy has enjoyed a century of
unprecedented growth…
4.05% CAGR
The middle class population has
grown to about 2 billion from less
than 700 million in 1960
“Gross World Product
has grown
Businesses can tap markets

2014
phenomenally from
overseas and partners from all
$1.7 trillion in 1920 to
over the Globe
over $71 trillion today

1920 Total global consumer spending

was more than $28 trillion in 2010
and is expected to hit $40 trillion
$1.7
trillion
> $71 trillion by 2020

“The worlds
> 7b population has Governments are reforming the
more than doubled business environment in a
between 1960 and competitive bid to attract investors
1.45% CAGR
2010; from 3.4
billion to over 7
Rapid development of ICT has not
billion presently
only lowered the cost of running a
business; it has opened up new
2010 markets
1960 3.4b

2
The expanded use of ICT is evidence of growing prosperity around the world...

Source: internetworldstats.com

Mobile phone subscriptions are expected to top

7 billion this year. It is estimated that mobile
phone subscriptions will overtake the worlds
population as soon as 2015!

There are currently 2.8 billion

internet users in the world. By 2020,
more than half of the world  s
population will be internet users Source: internetworldstats.com

3
The Social Media revolution has also changed the way we live and do business...

37%

43% 57% 63%

39%

70% of global 37% 63%

61%
internet users
own a Facebook
Account

37%
63%

Male Female

4
Africa – the preferred investment destination...
Average Economic Growth per continent (2001 – 2010)

2.03%

2.89%

3.54%

5.58%

6.03%

Africa remains the fastest growing

continent in the world. In the last 13
years, 6 of the 10 fastest growing
economies have been in Africa
Source: Financial Times

5
Africa‘s Economic Promise...
!! Africas middle class
has tripled since the
1980s to about 313
million people
according to the ADB
$43

!! Consumer spending is
almost $1 trillion
presently and will top
$1.4 trillion by 2020
according to the
McKinsey Global
Institute

Median Age by Region

20
Africa has the most
attractive
28 demographics, being
dubbed the youngest Last year, foreign direct
29 investments (FDI) in Africa
continent. By 2040,
grew by 16.2% over the 2012
32 Africas labour force
should exceed 1.1 billion level hitting $43 billion
38
people with about half
40 being women!

6
Africa‘s Mineral Wealth...
Africa is home to some of the worlds most coveted resources including 30% of the worlds total
hydrocarbons and mineral reserves…

95% of the worlds vanadium 44% of the worlds chromites

88% of the worlds diamonds 42% of the worlds gold

82% of the worlds manganese 42% of the worlds bauxite

73% of the worlds platinum 38% of the worlds uranium

of the worlds
60% uncultivated arable land 25% of the worlds arable land

of the worlds crude oil

55% of the worlds cobalt 12% reserves

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Opportunities across sectors in Nigeria...

◄ Average GDP growth of more

than 7%

◄ Most populous African country with

a growing middle class creating
opportunities across sectors

◄ Listed by Jim O’Neill on the N-11 list

◄ Listed along with Mexico,

Indonesia and Turkey (MINT) as
countries deserving investors’
attention

◄ Would become Africa’s biggest

economy when GDP is rebased

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The Petroleum Sector...

۞ The sector still accounts for 80% of

government revenues and almost
95% of Nigeria’s foreign exchange
earnings
۞ The Petroleum Industry Bill (PIB)
once passed, is expected to increase
investments in the sector
۞ Opportunities exist for indigenous
firms in the operation of marginal
oil fields. 31 fields have been listed
for auctioning in 2014
۞ A few Nigerian women such as
Folorunsho Alakija and Catherine
Uju Ifejika have been able to tap
into opportunities in the sector

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Power...

۞ The recent privatization of power

generation and distribution has
created immense opportunities in
the sector
۞ Government has earned $2.32
billion from the sale of the
GENCOs and DISCOs. An
additional $5.8 billion is expected
to be realized from the sale of 10
NIPP plants
۞ With this privatization exercise,
the sector is now fully liberalized
and businesses can apply for
licenses to build plants or set up
distribution outfits
۞ Women can also participate
through the capital market when
these utility companies list on the
NSE

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Agriculture...

"! Opportunities available to women

in the sector include rice and
cassava processing with Nigeria
being the worlds largest
producer of cassava
"! Despite poor processing capacity,
opportunities exist for cassava
bread production and over $2
Agriculture has consistently dominated
Nigerias non-oil sector growth and accounts billion demand for dried cassava
for over 50% of non-oil earnings… chips from Europe and China
"! In 2013, $1.2 billion financing was
8.3% 8.5%
8.9% received from Chinas Exim Bank
7.1%
7.5% to fund private investors
5.2%
intending to set up large scale rice
4.9%
processing plants

1.8%
"! Governments plans to set up
0.5% staple crop processing zones will
-0.6%
also create business opportunities
women can tap into

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Information & Communication Technology...

۞ With average annual growth rates of

32% since 2005, ICT has been the
country’s fastest growing sector since
the liberalization of telecommunications
in the early 2000s
۞ Funke Opeke, through her company,
MainOne Cable Company has obtained
$240 million investment from the AFC
and ADB to lay out a 7,000km
submarine cable from Portugal to Ghana
with Data Centres in Ghana and Nigeria.
Another 7,000km will be covered in
Phase 2
۞ Such efforts have significantly reduced
cost and quality of internet services for
West Africans.
۞ Opportunities also exist within the $15
million venture capital fund for software
developers launched by the Ministry of
Communications Technology

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Financial Services...

"! The financial services sector is

still significantly dominated by
men, although women have
demonstrated the capacity to
deliver at the highest levels
"! Outstanding women such as
Sola David-Borha (CEO of
StanbicIBTC) and Bola Adesola
(CEO of Standard Chartered
Bank) have built distinguished
careers in the sector
"! Others such as Nimi Akinkugbe
and Ononuju Irukwu have
focused on using their
experience to teach Nigerians
the virtues of personal finance
and wealth management. Nimi
recently won the franchise for
Monopoly ® in Sub-Saharan
Africa

13
Arts, Sports and Entertainment...

۞ The Nigerian film industry – Nollywood has

has produced actresses of international
repute such as Omotola Jalade Ekeinde,
Genevieve Nnaji and Patience Ozokwor
۞ Chimamanda Ngozi Adichie ’ s award-
winning second novel “Half of a Yellow Sun”
was adapted into screenplay and premiered
in London and Toronto in 2013. The
production was financed by experienced
investment banker, Yewande Sadiku
۞ Following in the steps of established names
like Deola Sagoe and Folake Folarin-Coker
(Tiffany Amber), rising designer label, Maki
Oh by young designer, Amaka Osakwe has
been gaining celebrity clientele since
Michelle Obama appeared in a Maki Oh print
in 2013.
۞ The history of Nigeria’s participation at the
Olympics cannot be complete without the
mention of Nigeria’s first gold medal winner
– Chioma Ajunwa

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Evolution of the Female Gender...

Globally, women have transited from a heavily dependent, largely domestic and voiceless
demographic grouping, to key players in every segment of human endeavor…

Valentina Tereshkova Women

of the Soviet Union currently
became the first woman account for over
in space in 16th June, 40% of global
1963 workforce

1963 2013

1991
During the Gulf
War, women
officially served in
combat for the first
time

…however, before we begin to jubilate, we must consider some of the

realities that must be addressed if women are to attain their full
potential…

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Access to Finance...

Women-owned businesses are financially underserved

of women entrepreneurs in an IFC survey in the Middle-

75% East and North African (MENA) region reported being
denied bank loans

In Europe and Asia, women are 20% more likely than men to
be rejected by a bank

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Access to Land...

Globally, women own less than 10% of the world’s land according to the Food and
Agriculture Organisation (FAO)…

of registered land owners in Kenya

5% are women

of land in Brazil is owned by

11% women

of privately held land in Ghana is

25% owned by women

“
“ Although, women make up between 60%-79% of rural workforce in Nigeria, they
are five times less likely to own land than men

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Earning Disparities...

Assets
Wages
"! The richest
woman in the In the European Union,
world is worth
women earn 16% less
less than than men; in the U.S, a

$ 50% the net woman earns averagely

worth of the 77% of what a man

richest man earns
$ "! Africas richest
woman is worth

less than15% In Canada, full-time

female workers earn
of the total wealth
of the continents
richest man
82.6% of mens
according to earnings, based on
Forbes average weekly
wages

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Disparities in Female Representation in Decision Making...
Only 35 countries in the world, including 9 in Africa have attained 30% women representation in
elective offices.
Governance in Nigeria…
Supreme Court 76%
Presidency 100% Senate 96%

24%

4%

Governors 100%
92%
House of Reps 93%
& Deputies

Nigerias first
female Chief
8%
7%
Justice of the
!"#$% &$'"#$%
Federation; the
Governors Deputies !"#$% &$'"#$% first woman to
head an arm of
Federal Cabinet 79% States Houses of 94% government at
Assembly the federal level

21%

6%

!"#$% &$'"#$%

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In Business – Women on Boards...
A 2011 survey by Catalyst found a 26% increase in return on invested capital between companies
where women make up at least 19% of the board and those with no women at all!

However…
Level of Women Representation on Boards

Fortune 500 companies are

40.9%
Only 23 currently led by women

Companies have female CEOs

Only 15 out of 190 listed companies in
26.8% 27.0%
Nigeria

18.3%
16.9% 17.1% 17.3%
14.1%

10.7%

7.7% 8.1% 8.2%

4.7% 4.8%

1.1% 1.9%
0.1% What if Lehman
brothers had been
Lehman Brothers
& Sisters?

Sources: SEC, Catalyst.org

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Improving access to opportunities for women and closing the gender gaps...
1 Access to Finance
!! Governments reform of the
investment climate and
maintenance of macro-economic
stability will improve access to
finance for women entrepreneurs
!! The 2nd phase of YouWin provided
funding and coaching to about 1,200
young women
!! The MSMEDF is a N220 billion fund
with 60% dedicated to women-
sponsored businesses at single-digit
interest rates
2 Asset Ownership
!! The National Gender Policy aims to
address the imbalance in access to
economic resources including the
right to inheritance and ownership
of land and property
3 Improving Women Education
!! Our society must invest heavily in
womens education and
healthcare…older women who did
not have the opportunity to go to
school can be integrated through
target programmes like vocational
training and continuing education
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Improving access to opportunities for women and closing the gender gaps...

4 Political Representation 5 Board Representation

!! Increased participation of women in !! SECs analysis of board

politics, public governance and
policy-making should be
encouraged as women are
significantly able to the quality of
governance
membership of listed companies
shows that out of almost 200 quoted
companies, 73 have no woman on
their boards and only 33 have at
least 20% of board seats occupied by
women. No more than 5 have female
CEOs

As the custodian of the Code of Corporate Governance in Nigeria, SEC is interested

in seeing companies pay more attention to gender diversity at board and senior
management levels

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Capital Market Performance...
Nigeria
s Stock Market ranked among the top 10 performers in the world for 2013, and provides
immense opportunities for women empowerment...

480

130.98

63.08

61.76
Nigeria
s stock market out-
performed other African
markets in 2013. Prospects
55.6
for 2014 are exciting

51.46

47.19

43.5

38.32

33.64

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Opportunities for Women‘s Economic Empowerment in the Capital Market...
The capital market is an important source of funding for women-owned businesses as the market
does not discriminate on the basis of gender.
Funding Options…
Alternative Securities Market
1 2
(ASeM)
!! Similar to Egypts Nile Exchange
(Nilex) and the Bondm platform in
Germany, the ASeM was established
to facilitate listing by SMEs
!! ASeM relaxes listing requirements
to accept 2-year comprehensive
business plans from companies
without a track-record
!! Designated Advisors (DAs) and
Growth Ambassadors have also
been introduced to mentor ASeM-
listed business owners
Angel Investing, Private
Equity and Venture Capital
!! Capital markets create avenues for
vibrant angel investing, private
equity (PE) and venture capital (VC)
industry which help women
entrepreneurs access patient seed
and growth capital
!! Africa currently has over 200 PE/VC
funds with well over $35 billion in
capital closed since 2002
!! In 2013, $1.6 billion was invested
across 74 deals in Africa, with two-
thirds of these in Nigeria, Kenya
and South Africa
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Opportunities for Women‘s Economic Empowerment in the Capital Market...

3 Crowdfunding Platforms

!! This allows entrepreneurs with bright

ideas to pitch online soliciting for

“
investments beyond their networks
!! There are currently over 500
crowdfunding websites globally, which
have helped organisations and
“
The Capital Market does
not discriminate on the
individuals raise about $5.1 billion in 2013 basis of gender
alone
!! SEC is currently working with the Federal
Ministry of Industry, Trade and
Investment to develop a framework for
the safe regulation of this nascent
industry

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